Volatility is everywhere in the stock market these days. Almost every CEO, it seems, is tamping down expectations due to an uncertain macroeconomic environment or backing away from guidance entirely. But savvy investors know that volatility creates opportunity for investors, or as Warren Buffett advised in one half of his famous quote, "Be greedy when others are fearful."

If you're looking for some oversold stocks to take advantage of in the market sell-off, keep reading to see my two favorite picks right now.

1. Airbnb: an underrated travel disruptor

In a little more than a decade, Airbnb (ABNB -1.17%) has turned the travel industry on its head, making a stay in someone's home a viable option anywhere in the world. 

The home-sharing leader now has more than six million listings on its platform and has spawned a new industry in travel that includes competitors like Expedia's Vrbo, Vacasa, Tripadvisor's FlipKey, and Hipcamp, while legacy online travel companies like Booking Holdings have invested in making "alternative accommodations" like apartments widely available on their platforms.

Despite that gold rush into home-sharing, an industry Airbnb still dominates, the stock trades at a reasonable forward price-to-earnings (P/E) ratio of just 28, down from a 2022 peak of more than 60. That's a sign investors expect its growth will soon decelerate.

While we could be headed for a recession in 2023, travel has thus far proved more resilient than other sectors as people around the world are still making up for missed opportunities during the pandemic. Even if the travel sector takes a hit, Airbnb has advantages over peers like Booking and Expedia that should give it a leg up in a recession.

First, unlike the hotel-focused online travel agencies, private hosts around the world use Airbnb as a way to make money, whether that's as supplementary income or their primary job, and when other sources of income dry up, prospective hosts are more likely to turn to Airbnb.

For instance, the company said in the third quarter that single-room listings jumped 31% from a year ago, a sign that people are looking for extra money to cope with the cost-of-living crisis around much of the world.

Second, Airbnb's interest income -- which it earns on funds collected for bookings (before paying them out to hosts) -- will soar thanks to higher interest rates and could go significantly higher than the $58.5 million it reached in the most recent quarter. That's essentially cost-free profit.

Airbnb has gained significant market share over its peers since the pandemic, and it should continue to do so over the coming years, regardless of the broader economy. At the current price, the stock looks like a steal.

2. Williams-Sonoma: A hidden retail gem

Williams-Sonoma (WSM 1.65%) could be as timeless a brand as there is in home goods. The company, which has been around since 1956, is known for classy cookware and tableware, and is a popular staple on wedding registries.

Today, Williams-Sonoma owns both Pottery Barn and West Elm, and the Williams-Sonoma brand makes up just a fraction of total revenue.

During the pandemic, the company delivered tremendous growth, benefiting from a boom in demand for home goods. It's also gained market share and proved more resilient to the macro volatility as comparable-store sales (comps) jumped 8.1% in the fiscal 2022 third quarter. On a three-year basis, comps are up nearly 50%. The retailer delivers operating margins that are among the strongest in its industry -- 15.5% in the most recent quarter.  

Those numbers show the strength of the business, but what makes Williams-Sonoma one of my favorite stocks right now is its rock-bottom valuation. The stock trades at a P/E ratio of just 7 based on trailing earnings per share.

The reason Williams-Sonoma trades at such a discount is the company pulled its outlook through fiscal 2024 in the most recent earnings report, which had previously called for $10 billion in revenue by that year. But the earnings call showed that the decision to pull the guidance was more about being prudent than forecasting clear headwinds. In fact, the company expects profitability to improve in the second half of next year as it laps supply chain challenges, though revenue growth might be more uncertain in a recession.

However, the company has taken advantage of the sell-off, and it has the balance sheet to manage through any turbulence. It has reduced shares outstanding by 9% over the last year, and the company has no debt on its balance sheet, meaning it's not at great risk in a downturn.

Williams-Sonoma offers a 2.7% dividend yield, giving investors another reason to buy. At the current valuation, the stock looks primed to bounce back once market sentiment shifts, and earnings per share could surge as well as the company takes advantage of the beaten-down share price.